Recording Stock Dividends and Stock Splits The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, $10 par, 30,000 shares outstanding $300,000 Paid-in capital in excess of par 102,000 Retained earnings 200,000 The fair value of its stock is $18 per share. Prepare journal entries for the following three separate scenarios. a. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. b. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. Of the 3,000 stock dividend shares, 2,800 shares are whole shares and 200 shares are fractional shares. It is the company’s policy to pay out fractional shares in cash. c. The company declares (November 1, 2020) and issues (November 20, 2020) a stock split effected in the form of a 100% stock dividend. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Journal Entry Options: Given in image Account Name Dr. Cr. a. Nov. 1, 2020 Answer Answer Answer Answer Answer Answer Answer Answer Answer To record declaration of dividend. Nov. 20, 2020 Answer Answer Answer Answer Answer Answer To record issuance of dividend. b. Nov. 1, 2020 Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer To record declaration of dividend. Nov. 20, 2020 Answer Answer Answer Answer Answer Answer To record issuance of stock dividend. Nov. 20, 2020 Answer Answer Answer Answer Answer Answer To record issuance of cash dividend. c. Nov. 1, 2020 Answer Answer Answer Answer Answer Answer To record declaration of dividend. Nov. 20, 2020 Answer Answer Answer Answer Answer Answer To record issuance of stock dividend. Avoid solutions image based thanku

Recording Stock Dividends and Stock Splits The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, $10 par, 30,000 shares outstanding $300,000 Paid-in capital in excess of par 102,000 Retained earnings 200,000 The fair value of its stock is $18 per share. Prepare journal entries for the following three separate scenarios. a. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. b. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. Of the 3,000 stock dividend shares, 2,800 shares are whole shares and 200 shares are fractional shares. It is the company’s policy to pay out fractional shares in cash. c. The company declares (November 1, 2020) and issues (November 20, 2020) a stock split effected in the form of a 100% stock dividend. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Journal Entry Options: Given in image Account Name Dr. Cr. a. Nov. 1, 2020 Answer Answer Answer Answer Answer Answer Answer Answer Answer To record declaration of dividend. Nov. 20, 2020 Answer Answer Answer Answer Answer Answer To record issuance of dividend. b. Nov. 1, 2020 Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer To record declaration of dividend. Nov. 20, 2020 Answer Answer Answer Answer Answer Answer To record issuance of stock dividend. Nov. 20, 2020 Answer Answer Answer Answer Answer Answer To record issuance of cash dividend. c. Nov. 1, 2020 Answer Answer Answer Answer Answer Answer To record declaration of dividend. Nov. 20, 2020 Answer Answer Answer Answer Answer Answer To record issuance of stock dividend. Avoid solutions image based thanku

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Recording Stock Dividends and Stock Splits

The records of Dixie Corporation showed the following balances on November 1, 2020.

Common stock, $10 par, 30,000 shares outstanding	$300,000
Paid-in capital in excess of par	102,000
Retained earnings	200,000

The fair value of its stock is $18 per share.

Prepare journal entries for the following three separate scenarios.

a. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend.

b. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. Of the 3,000 stock dividend shares, 2,800 shares are whole shares and 200 shares are fractional shares. It is the company’s policy to pay out fractional shares in cash.

c. The company declares (November 1, 2020) and issues (November 20, 2020) a stock split effected in the form of a 100% stock dividend.

Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.
Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).

Journal Entry Options:

Given in image

Account Name	Dr.	Cr.
a.	Nov. 1, 2020	Answer	Answer	Answer
		Answer	Answer	Answer
		Answer	Answer	Answer
		To record declaration of dividend.
	Nov. 20, 2020	Answer	Answer	Answer
		Answer	Answer	Answer
		To record issuance of dividend.
b.	Nov. 1, 2020	Answer	Answer	Answer
		Answer	Answer	Answer
		Answer	Answer	Answer
		Answer	Answer	Answer
		To record declaration of dividend.
	Nov. 20, 2020	Answer	Answer	Answer
		Answer	Answer	Answer
		To record issuance of stock dividend.
	Nov. 20, 2020	Answer	Answer	Answer
		Answer	Answer	Answer
		To record issuance of cash dividend.
c.	Nov. 1, 2020	Answer	Answer	Answer
		Answer	Answer	Answer
		To record declaration of dividend.
	Nov. 20, 2020	Answer	Answer	Answer
		Answer	Answer	Answer
		To record issuance of stock dividend.

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Cash
Equipment
Investment in Stock
Dividends Payable
Property Dividends Payable
Preferred Stock
Common Stock
Common Stock Dividends Distributable
Paid-in Capital in Excess of Par-Common Stock
Paid-in Capital in Excess of Stated Value-Common Stock
Paid-in Capital in Excess of Par-Preferred Stock
Paid-in Capital-Retired Stock
Paid-in Capital-Treasury Stock
Retained Earnings
Treasury Stock
Legal Expense
Unrealized Gain or Loss-Income

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